Thinking of taking that little risky leap to chase your dreams? No matter how much you hate your boss, believe your business plan is a guaranteed win, or can’t wait to leave your unfulfilling job; there is a right and a wrong way to start a business. Regardless of whether you intend to juggle your startup with your current job, or plan to leave your job and fully dedicate yourself to your business, you must make sure to be fully prepared and make the right moves.
If you think you have a solid plan for a business but are unsure if you have enough investment, or if your investment might end up going to waste; here are questions you must ask yourself to achieve success in your venture.
A lot of people dream of having a successful business but only a few accomplish their goal. Small businesses are highly likely to fail. The minutest mistakes can cost you the whole business. It’s easy to think about starting a business but when it comes to the practical world, there are many factors that affect your choice. Let’s find out if you’re ready to take the leap of risk or not.
Your 9 to 5 isn’t satisfying you.
There’s a time when you absolutely love what you do. During that time, you don’t mind waking up early or following tight schedules. You love following the timetable even if your boss crafted it for you. However, if these signs don’t seem to match your current situation, odds are you’re on your way to a business. We don’t suggest you to immediately quit your job. In fact, continue your job while you devise a plan for your business. You never know what the fate of your business might be at this point. So keep the job fir financial security while you start to think in detail about your business plan.
Serving the greater good can be accomplished in many ways. And most don't require setting up an IRS approved nonprofit, a complicated task that many people underestimate.
If you are thinking of starting a new nonprofit, consider one of the many other ways of applying your passion for a cause. You might decide that another nonprofit is not needed at all and that you can do more good in another way.
Joanne Fritz of www.thebalance.com has provided eight alternatives to starting a nonprofit.
1. Look for fiscal sponsorship.
Look for a fiscal sponsor instead of becoming a tax-exempt organization yourself. Fly under the cover of an existing nonprofit so that you can accept donations and apply for grants before being registered as a tax-exempt organization. Fiscal sponsorship is often used while a nonprofit gets organized, or it can be used for a single project. Fiscal sponsors cover a lot of the back office expenditures you'll need as you set up shop.
The first rule of a non-profit organization is that the founders work on a zero profit basis. Take note that non-profits have founders, not owners, who work for some non-profit purpose like education, charity or something related to religion. These people are also exempt from taxes as long as their activities and earning is based off such non-profit purpose.
Does this mean non-profit founders earn nothing? Well, that’s not true. There are certain ways you can earn money while running a non-profit business that is exempt from taxes too.
When joining a new organization, understanding its structure and goals is tremendously important if you are looking for long-term success. Nonprofits and For-profits are two major organizational structures that have different missions and target audiences. Below are the key differences between the two:
All companies have a unique purpose, and hereby lies the primary difference between a nonprofit and a for-profit. For-profit organizations have a number of different goals. Out of these, the primary goal is to develop products that are valuable to customers and eventually generate profit. Companies are focused on developing products and services that directly solve a problem, or are looking to increase overall efficiency. A nonprofit, however will not prioritize profits, and is instead dedicated to promoting a social cause, focused on helping communities, or advocating for a particular issue.